Dollar on the defensive post Fed chat, good to short USD/JPY on break below 122.45

Fed speakers on Thursday have not been dollar friendly, with concerns over inflation and timings of a rate hike. Stanley Fischer, spoke about incorporating financial stability into monetary policy, suggesting downward pressure on inflation related to energy will fade.

• The dollar has been broadly weaker across the board, on the defensive against safe havens such as yen, Swiss franc as risk appetite also ebbs on tumbling equities. 
   
• USD/JPY is currently trading at 122.61 with low of 122.50 and a high of 122.77 till now.  It had scaled a 2-1/2-month high of 123.60 early this week after a bullish U.S. jobs report heightened prospects of the Federal Reserve hiking interest rates in December.
• Markets will focus on further data from the U.S docket today. Attention will be on retails sales, expectations are for a rise to 0.4% in October vs -0.3% in September. 

Recommendation: Go short on breaks below 122.45, SL: 123.10, TP1: 121.70, TP2: 121.50 (38.2 % Fibo retracement of 118.05 to 123.60 rise)

Resistance Levels:

R1: 122.77 (Nov 12 highs)

R2: 122.87 (Nov 11 highs)

R3: 123 (psychological levels and trendline resistance)

Support Levels:

S1: 122.45 (trendline support)

S2: 122.25 (10 DMA)

S3: 121.63 (Nov 11 low)

S4: 121.50 (38.2 % Fibo retracement of 118.05 to 123.60 rise)